For Week 7, Business Plan, you are to complete your financial projections and provide your assumptions and critical risks that may or may not affect the success of your startup business. In this section, you are to tell your readers about alternative plans if your projections are not met. Identify an exit strategy, if you will have one. Not every business owner wants to exit their startup business, but if it is your plan to start the business and exit within a period of time, explain that strategy. The financial section is completed during this week to include:1. A balance sheet – your projected assets and liabilities for your startup, and the projected equity of the organization.2. Projected income statement for year 1, 2, and 3. Your are to projected your annual revenues and expenses for the startup based on your product identified and customer base.3. Cash flow statement, your projected cash flow in and out of the business for year 1.
Running head: MANAGEMENT
Business Management – 3
Cassandra Smith
Small Business
Sept 9, 2019
MANAGEMENT
Financial Data
FRESNIUS FRIES is a business that has been in operation since 2005.Currently, It
operates as a private company. Cassandra Smith has experienced a tremendous growth over the
recent years hence the need to expand its operations into new areas. The call for expansion
therefore, needs additional capital for invest in the new branches. Important to note that the
additional capital will be used exclusively to buy production machinery. The price of the
machinery is $ 3 million including installation cost.
Fresnius Fries intends to finance the purchase of that machinery from the potential
investors and a bank loan. The business intends to issue 25% of the total ownership of the
company to two potential investors in exchange of $ 2 million. The rest of the money will be
financed through bank loan from the World Bank.
Consequently, as a result of the above transaction, the capital structure of Fresnius Fries
will change drastically. Currently. Company has been having 1:1.5 as the company’s debt to
equity ratio. The highest debt to capital was experienced during the early years after the
incorporation of the company. Additionally, the debt to income ratio has been below 35% over
the last 12 years implying that the company has been profitable.
Prospective investors shall enjoy all the rights of any other ordinary shareholder except
that he/she will not be entitled absolute control or influence on the selection of the management.
However new investors will enjoy the following rights and privileges: the right to attend general
2
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3
meeting, the right to audit the books of accounts and the right to be consulted on matters relating
to the sharing of profit or new investments.
Finally, new shareholder will be entitled to dividends which will be payable once all
other expenses are paid. The expense in this context refer to all costs incurred during the actual
operation of the business. For instance, salaries, rent, electricity, taxes and preference
shareholders dividends. The dividends will be on the net profit upon negotiation among the
shareholder about the amount to be ploughed back to the business and the rest shared as
dividends.
SUMMARY OF 3 ACTUAL YEARS AND 3 PROJECTED
2016
2017
2018
2020
2021
2022
Revenue
3,000,000
3,250,000
3,560,000
3,750,000
4,000,000
4,400,000
Net
1,750,000
1,950,000
2,150,000
2,444,000
2,657,000
2,435,000
Income
MANAGEMENT
4
Assets
7,500,000
7,700,000
8,100,000
8,400,000
8,700,000
9,000,000
Liabilities
1,450,000
1,650,000
1,850,000
2,150,000
2,350,000
2,600,000
Net Worth
Reference
MANAGEMENT
5
Storey, D. J., & Greene, F. J. (2010). Small business and entrepreneurship. Financial
Times/Prentice Hall.
Running Head: MANAGEMENT
Business Plan Part 4
Cassandra Smith
Small Business Management
Sept 16, 2019
MANAGEMENT
2
Executive Summary
FRESNIUS FRIES is a business Company that has been in operation since 2005. The
company deals with fried chicken. It is a major restaurant in the city. Currently, it operates as a
private company. Cassandra Smith has experienced tremendous growth over the recent years
hence the need to expand its operations into new areas. The call for expansion, therefore, needs
additional capital to investment in the new branches. Important to note that the additional capital
will be used exclusively to buy production machinery. The price of the machinery is $ 3 million
including installation cost.
Fresnius Fries intends to finance the purchase of that machinery from the potential
investors and a bank loan. The business intends to issue 25% of the total ownership of the
company to two potential investors in exchange of $ 2 million. The rest of the money will be
financed through a bank loan from the World Bank.
Company Description
The company provides fried chicken to the city dwellers. The employees of the company
have a quick response in serving the clients. In a day, the company makes the profits of about
$100,000. However, the money is used to pay the workers and service maintenance of the
machines in place. Customers travel from various destinations to come and have a taste of a
delicious fried chicken. This has prompt the company to consider establishing another outlet to
near the customers to maximize the profit-making.
Competitive Advantages
Advance technology in service delivery. Most of the services are automated. The
customers are required to just place an order remotely and automatically the quantity of fried
MANAGEMENT
3
chicken delivered to the serving table where one acknowledges the requested food and pay via epayment service.
Impressive company managements and reputations. The day to day coordination and
corporation of the company is smoothly run. The discounts and tokens are given to clients to
entice them. The operation manager ensures the employees make the customers satisfied and feel
the value of their money.
The threat to the Company
The setback for the company is product delivery to the clients who are far from the city.
The challenge is addressed by expanding the company in the target region. The financial
challenge becomes a hindrance and the company decides to look for investor and bank loans.
Company Objectives
•
To provide quality products and services to customers.
•
To uplift the status of the community through promotions and community help
•
To establish a wider market for fast food and ensure make expansion
Market Analysis
FRESNIUS FRIES Company is well-known in the nation because of its delicacy and
mouthwatering fried chicken. The business has a head start and commencement to other places
will not be hard. Furthermore, there are few companies that provide the same services to the area
the expansion needs to be done.
MANAGEMENT
4
Organization and Management
The company outlet will be centralized. The central manager will be in charge of the
company. The outlets will be having their managers who are answerable to the central manager
for the day in day out running of the company business. Investors shall be considered as
shareholders.
Prospective investors shall enjoy all the rights of any other ordinary shareholder except
that he/she will not be entitled absolute control or influence on the selection of the management.
However new investors will enjoy the following rights and privileges: the right to attend the
general meeting, the right to audit the books of accounts and the right to be consulted on matters
relating to the sharing of profit or new investments.
The new shareholder will be entitled to dividends which will be payable once all other
expenses are paid. The expense in this context refers to all costs incurred during the actual
operation of the business. For instance, salaries, rent, electricity, taxes and preference
shareholders dividends. The dividends will be on the net profit upon negotiation among the
shareholder about the amount to be invested back to the business and the rest shared as
dividends.
Marketing and Sales
The objective of the company is to provide quality services to the clients and improve the
status of people in society. In details, the company not only looks into the fried chicken provision
and get profit but also giving back to society. This is a market strategy where FRESNIUS FRIES
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has used to mingled and help the residents. Promotions and community help are the key factors
that have made the company to be more robust in the city and the wide region of the nation.
After service luxury leisure. The company has built swimming pools and breeze taking
environment that one can enjoy while taking the meal or after. Also, children playing ground is
situated around the company premises. It keeps the kids entertained while they buy more food
from the company.
Financial Projections
From the executive summary, the capital structure of Fresnius Fries will change
drastically if the outlets’ expansion is realized. Currently, the Company has been having 1:1.5 as
the company’s debt to equity ratio. The highest debt to capital was experienced during the early
years after the incorporation of the company. Additionally, the debt to income ratio has been
below 35% over the last 12 years implying that the company has been profitable.
3 Actual Years and 3 Projected
2016
2017
2018
2020
2021
2022
Revenue
3,000,000
3,250,000
3,560,000
3,750,000
4,000,000
4,400,000
Net
1,750,000
1,950,000
2,150,000
2,444,000
2,657,000
2,435,000
Assets
7,500,000
7,700,000
8,100,000
8,400,000
8,700,000
9,000,000
Liabilities
1,450,000
1,650,000
1,850,000
2,150,000
2,350,000
2,600,000
Income
Net Worth
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Key Success Factors
a) Delivery of quality fast food and delicacy to the clients
b) High-quality staff and managerial skills to run the company
c) High efficiency in service delivery and the use of advanced technology
d) The location of the company is favorable to its clients.
Company Intangible Assets Assessment
The intangible assets bring a good amount of economic bolster to the company. It has
increased market share and visibility. In turn, there is raised in earning due to pricing and service
delivery to the clients. Also, saving of advertising cost.
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References
Storey, D. J., & Greene, F. J. (2010). Small business and entrepreneurship. Financial
Times/Prentice Hall.
Running Head: MANAGEMENT
1
Business Plan Part 5
Cassandra Smith
Small Business Management
9/23/2019
Running Head: MANAGEMENT
2
Marketing Strategy and Marketing Plan
The FRESNIUS FRIES Company intends to attract more customers from all the parts of
the country and globe. The strategy involves marketing management which is concerned with
target market selection as well as designing the marketing program (Varadarajan, 2010). Various
strategies will be applied in this process. For instance, the company must involve all the
stakeholders in advertising the company’s products to the community.
Regarding this, Fresnius fries will sponsor a local sports team. The stakeholders will
choose an athletic team based on merit criteria. Therefore, the company will print its name and
the logo on the attires. Moreover, team members will get support, including free food, offering
discounts as well as free gear. Hence, creating awareness to more customers.
Establishing partnerships with other local businesses is another method. It will majorly
involve coming up with creative ways towards working together on promotions. Nevertheless,
the contacts will frequent the company and lure new consumers through positive word of mouth.
Besides, interacting with other companies through mutual exchange will eventually attract more
customers. Consequently, FRESNIUS FRIES will gain a positive reputation in the country.
Joining the local chamber of commerce is also another strategy the company intends to
utilize. It is mainly a platform for owners of businesses. The membership will help to connect
with other companies. Moreover, there will exist an increase in the advertisement for the
business to make it more visible to the community.
Marketing techniques
Running Head: MANAGEMENT
3
Various marketing media techniques will be used, including both social media and print
media. The most marketing media strategy the company intends to apply is social media. Social
media is preferred in this context since individuals widely use it. One of the objectives was to
establish a broader market for fast food and ensure its expansion. Social media platforms will
help reach out to many customers in the country as well as overseas. The print media will only
be advantageous to people who live locally and who do not have easy access to the internet. The
social media techniques will involve developing a great website where the company’s products
will be posted. It will encompass the ingredients used in the preparation of fried chicken and
their prices. This will make the company transparent. Hence, customers will have faith in their
products.
Content marketing, as well as blogging, is also a methodology the company intends to
utilize. FRESNIUS FRIES will employ bloggers who will publish their products on Facebook,
Twitter, LinkedIn, and other platforms. As well, the bloggers will include the company’s
missing, vision, and objectives. As a result, more customers will get accessed or products by
placing their orders online.
The product will be introduced through identifying the target customers, studying the
completion around while performing a SWOT analysis, and creating a unique value proposition.
More importantly, the company will roll out a campaign for launching the product. Social media
will be used to place articles and win interviews. Moreover, allowing the coverage of the product
by the press to review the product will be of great importance.
Marketing research
Running Head: MANAGEMENT
4
The primary marketing research that the company exercised were: interviewing
individuals in the community through telephone and face-to-face encounter. The online and mail
surveys were conducted to gather more data concerning the products. The focus groups helped in
getting direct feedback from the potential clients and customers. The secondary research helped
the company to identify the competitors, establishing benchmarks as well as identifying the
target segments. The analysis indicated that most of the customers are well contented with or
products. The stakeholders decided to increase the frequency of offers and strategies to get more
customers worldwide.
The Potential Buyers
The potential buyers of the product are children and adults in the world. In recent years
the company has realized an increase in profits. It is as a result of increased customers in the
community as well as overseas. Besides, anyone can get accessed to the products regardless of
gender, education level, marital status, and hobbies. Nevertheless, the prices of the products are
affordable to anyone irrespective of income, more importantly, household income. As a result,
targeting the potential consumers has enabled efficiency in allocating the marketing resources
and increasing the opportunities for cross-selling and up-selling.
Running Head: MANAGEMENT
5
Reference
Varadarajan, R. (2010). Strategic Marketing and Marketing Strategy: Domain, Definition,
Fundamental Issues and Foundational Premises. Journal of the Academy of Marketing Science.
38(2). pp. 119-140. 10.1007/s11747-009-0176-7.
Business Plan Part 6
Cassandra Smith
Small Business Management
October 6, 2019
Management team
For every company to be successful, it has to adopt a strong organizational structure with a very
strong, competent and experienced management team. This will avoid mistakes and ensure
professionalism in the production and selling of goods and services. Therefore, FRESNIUS
FRIES Company plans to make more sales by attracting more customers, which is only possible
with a well-organized and skillful management team. These skills include sales and marketing,
production, finance, administration, procurement, and buying. However, not all businesses needs
these skills in the same degree.
Organization chart
An organizational chart involves the internal structure of a business. Employees are ranked
according to their levels and duties. With an organizational structure, a clear visual depiction of
the hierarchy and ranks of different people, jobs, and departments that make up the organization
(Lucid, n.d). Since organizational structures are different, FRESNIUS FRIES Company plans to
adopt a flat organizational structure, which involves the following structures.
Departmental manager
Manager 1
Staff1
staff 2
Manager 2
staff 3
staff 1
staff 2
Manager 3
staff 1
staff 2 staff3
Job descriptions
Employees in FRESNIUS FRIES Company have a role to play relevant to their position. This
will ensure every employee plays his or her part and in case of failure, he/she will be answerable
to the relevant authorities. The following is the job description for every employee.
i.
Departmental manager
Departmental managers are responsible for managing both the people and the budgets of the
company, recruiting, interviewing and orienting new employees, monitoring and evaluating staff
performance, settling strategic long and short-term departmental goals and evaluating outcomes.
It is also the responsibility of the departmental managers to motivate and inspire the employees
besides ensuring high levels of productivity.
ii.
Managers
It the duty of the manager to carry out the daily operations in each department. Other
responsibilities of the managers include:
•
•
•
•
•
iii.
Staffing
Setting company goals
Training new employees
Motivating employees
Delegating duties
Staffs
The staff in each department in the company has the following duties.
•
•
•
•
Perform administrative duties
Assist with staff workload
Enter data to the relevant storage devices concerning the employees of the company
Communicate with the customers and clients to ensure tasks run smoothly
Departmental managers’ resumes
Responsible for ordering stock recruiting employees, preparing financial records in a 0.8 million
dollar department including magazines and technology products.
•
•
•
•
Supervised 3 full-time and 2 part-time employees
Well-coordinated organized and executed 50-80 author appearances
High-level outstanding customer service levels
Helped other departments with the aim of overall store success.
Financial statements for the managers
i.
ii.
iii.
iv.
v.
Each manager has the role to verify the general ledgers through the date of the
financial statements prepared for.
Each manager has to prepare the balance sheet listing the asset categories in the store,
liabilities, and equities under his/her control. This will include debits and credits.
Has to record the value of money for each asset, liability, and equity in their relevant
book of accounts.
Has to record sales and purchases
Has prepared a detailed list of the company’s expenses including salaries, rent, debt
expense and any other type of expense under his/her control.
Compensation plan
Job title
Job overview
Responsibilities and
duties
Time Incentives and
benefits
Departmental Responsible
manager
for ordering
stock
recruiting
employees,
preparing
financial
records in a
0.8 million
dollar
department
including
magazines and
technology
products.
Managers
It the duty of
the manager to
carry out the
daily
operations in
each
department.
Managing both the
people and the
budgets of the
company, recruiting,
interviewing and
orienting new
employees,
monitoring and
evaluating staff
performance, settling
strategic long and
short-term
departmental goals
and evaluating
outcomes.
•
•
•
•
•
Staff
Carry out the
daily
responsibilities
of the
company as
assigned by
the manager
•
•
•
•
Staffing
Setting
company
goals
Training new
employees
Motivating
employees
Delegating
duties
Fulltime
•
•
•
•
Fulltime
FullPerform
administrative time
duties
Assist with
staff workload
Enter data to
the relevant
storage
devices
concerning the
employees of
the company
Communicate
with the
customers and
clients to
ensure tasks
run smoothly
•
•
•
•
•
•
•
•
Salary
Health
insurance
Buyouts
shares
Salary
Health
insurance
Buyouts
shares
Salary
Health
insurance
Buyouts
shares
Members on board
Departmental managers and the managers
Company philosophy
Mission
To be the best company with quality goods and services and excellent customer service.

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